subject: Frequently Asked Questions About Bankruptcy [print this page] Bankruptcy can be a debilitating situation to face, financially as well as mentally. If you are faced by the prospect of bankruptcy, a thousand questions may plague your mind simultaneously. This article is designed to address the most common questions that are asked regarding bankruptcy:
1.What is bankruptcy?
Bankruptcy is a legal status wherein laws allow you to start life afresh after paying off your bills and debtors, using your assets or by getting a repayment plan approved in court.
2.How can filing for bankruptcy help me?
Filing for bankruptcy may get you any or some of the following benefits:
You may get something called a discharge of debts, which means that you are exempted from paying any or all of your debtors.
Your assets may be exempted from foreclosure and you may be given a chance to catch up on the arrears of the payments.
If any of your assets have been repossessed, the court might pass an order for them to be returned to you.
It will get you relief from the harassment your debtors may be subjecting you to.
Chapter 7: This is also known as straight bankruptcy; it is the simplest and quickest form of bankruptcy available.
Chapter 11: This is known as corporate bankruptcy; it typically allows corporations to carry on operations while they attempt repaying their debts.
Chapter 12: This is aimed solely at the rehabilitation for family farmers and fishermen.
Chapter 13: This is a loan repayment plan for individuals with a regular source of income.
4.How often can I file for bankruptcy?
You can file for Chapter 7 bankruptcy now if 6 years have elapsed since you last filed for bankruptcy. Chapter 13 bankruptcy can be filed anytime.
5.How much will it cost to file for bankruptcy?
Filing for Chapter 13 bankruptcy will cost you (and your spouse) $185, while a Chapter 7 filing will cost $200. This is apart from your Chicago bankruptcy attorneys fees.
6.Will I lose everything I have once I have filed for bankruptcy?
Anything that falls under the Illinois Bankruptcy Exceptions is safe, apart from anything you get after 180 days after you have filed for bankruptcy. (If you get anything money or property within 180 days of filing for bankruptcy, then it may be utilized in paying of your debtors.)
7.Will filing for bankruptcy clear all my debts?
Only the legal debts that are listed on your bankruptcy petition will be cleared. Alimony or child support dues and student loads will not be cleared. (There have been cases where the court has considered the repayment of a student loan an undue hardship and the applicant has been exempted from repaying it.)
8.Will I have to go to court?
Usually, you may be asked to attend a simple proceeding where your bankruptcy forms and your financial situation will be discussed. Only in case there is a dispute you may have to appear before a judge.
As you can see, the laws are all in place to help you get a new lease on life after filing for bankruptcy in Illinois. If you are looking for legal advice and guidance, reach out to www.changandcarlin.com.
